CBM Asia Announces First Coalbed Methane Exploration Test Well Completed at Kutai West PSC, Kalimantan, Indonesia
VANCOUVER, BRITISH COLUMBIA, April 12, 2012 - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX.V: TCF) (US: CBMDF) (FWB: IY2) has been informed by the operator Newton Energy Capital Limited that the first coalbed methane exploration test well (“CBM-KW-02”) has been completed at the Kutai West Coalbed Methane Production Sharing Contract (“Kutai West CBM PSC”) block, located in East Kalimantan, Indonesia. CBM Asia holds an 18% working interest in the Kutai West CBM PSC.
Well logs indicate approximately 25 meters of coal were penetrated in the target Balikpapan Formation. Preliminary gas content values range from 75 to 175 scf/t (as received basis). Permeability averaged approximately 5 to 10 millidarcies. Final laboratory results are pending.
The drilling rig has moved off location and is now drilling a second core well location north of the initial location (well spud March 15, 2012 and is currently drilling ahead at 600 meters). CBM Asia notes that VICO Indonesia, operated by BP and ENI, as well as the Indonesian government have reported that commercial CBM production began in March 2011 from the adjoining Sanga- Sanga PSC and is being exported from the Bontang LNG facility to North Asian consumers.
“We are very excited about the results which are in line with expectations,” says Alan Charuk CBM Asia Development Corp.’s President and CEO. “The test results are supported by Dart Energy’s exploration results at the Sangatta West PSC to the north and VICO’s Sanga-Sanga PSC which lies adjacent to the east. The early success at Kutai West represents CBM Asia’s second consecutive exploration success, after the Sekayu PSC which is expected to begin drilling its first pilot program in the near future.”
